E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 15, 2017 Forecast

December E-mini Dow Jones Industrial Average futures are trading lower during the pre-market session. The Dow opened steady and traded through yesterday’s high before sellers came in to drive it lower.

The selling was a knee-jerk reaction to the news that North Korea fired another missile over Japan. The market has since retraced most of its earlier loss.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, it is in the window of time for a closing price reversal top. We’ve had a higher-high, now all we need is a lower close to form this chart pattern. We’ll have to watch the price action and read the order flow at yesterday’s close at 22172 all session to determine the tone of the market.

If there is selling pressure then the next level to watch will be the previous main top at 22089. A trade below this price will indicate the selling is greater than the buying at current price levels. The next target under this price is 22025.

Forecast

Based on the current price at 22165 (1103 GMT), the direction of the Dow today will be determined by trader reaction to yesterday’s close at 22172.

If the tone is bullish then look for another potential surge to the upside through 22172 since there is no resistance.

If the tone is bearish, sellers will press the Dow through 22172. If the move gains momentum then look for the selling to extend into 22089. If this price fails then look for the selling to strengthen.

I think the key number to watch all session is 22172. The Dow is either going to continue the rally or form a potentially bearish closing price reversal top.